SDN/NFV

PUBLISHER: Bizwit Research & Consulting LLP | PRODUCT CODE: 1813603

PUBLISHER: Bizwit Research & Consulting LLP | PRODUCT CODE: 1813603

Global Virtual Extensible LAN Market Size study & Forecast, by Component, by Enterprise Size, by Application, by End-User Industry and Regional Forecasts 2025-2035

PUBLISHED: September 15, 2025

PAGES: 285 Pages

DELIVERY TIME: 2-3 business days

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Description

The Global Virtual Extensible LAN (VXLAN) Market is valued at approximately USD 1.97 billion in 2024 and is projected to expand at a CAGR of around 16.00% from 2025 to 2035. VXLAN has emerged as a transformative networking technology that addresses the scalability limitations of traditional VLANs by enabling large-scale multi-tenant environments and efficient workload mobility across data centers. It encapsulates Layer 2 frames within Layer 3 packets, providing flexibility, segmentation, and better network utilization. The surge in cloud adoption, increasing deployment of data centers, and the rising demand for software-defined networking (SDN) architectures are fueling market expansion. Additionally, the growth of hybrid cloud infrastructures and enterprise migration toward virtualization and network automation have further cemented VXLAN as a critical enabler in modern IT infrastructure.

The growing reliance on multi-cloud and hybrid environments has significantly increased the relevance of VXLAN. Organizations are turning to this technology to seamlessly connect distributed workloads and to achieve scalable, secure, and agile networking. For instance, as enterprises expand their virtualized data centers and adopt cloud-native applications, VXLAN supports efficient segmentation and traffic isolation, ensuring operational resilience. The rising use of NFV and SDN overlays further accelerates VXLAN adoption, as it allows organizations to abstract complex networking tasks while meeting scalability requirements. However, high deployment costs, integration complexity, and challenges in managing interoperability with legacy systems remain hurdles, while the adoption of next-generation data center networking solutions presents growth opportunities over the forecast period.

The detailed segments and sub-segments included in the report are:

By Component:

Hardware
Software
Services

By Enterprise Size:

Large Enterprises
SMEs

By Application:

Multi-tenancy
Workload mobility
Software-Defined Networking (SDN) overlays
Network Function Virtualization (NFV)
Disaster recovery
Others

By End-User Industry:

BFSI
Healthcare
IT & Telecommunications
Government
Retail
Manufacturing
Media and Entertainment
Others

By Region:

North America
U.S.
Canada
Europe
UK
Germany
France
Spain
Italy
ROE
Asia Pacific
China
India
Japan
Australia
South Korea
RoAPAC
Latin America
Brazil
Mexico
Middle East & Africa
UAE
Saudi Arabia
South Africa
Rest of Middle East & Africa
Large enterprises are expected to dominate the market share during the forecast period. With their extensive IT infrastructure, large-scale data centers, and higher adoption of virtualization and cloud services, these organizations demand advanced network scalability and efficiency. VXLAN allows them to manage multi-tenant environments and securely extend networks across geographically dispersed locations. While SMEs are increasingly adopting VXLAN solutions as cloud computing becomes more accessible, large enterprises will continue to drive the lion's share of revenue, given their need for advanced virtualization and cross-domain workload mobility.
Software components currently account for the largest revenue contribution in the VXLAN market. As enterprises prioritize agility, scalability, and automation, software-based VXLAN solutions enable them to manage overlay networks flexibly without relying heavily on hardware. Software is also central to integrating VXLAN with SDN and NFV deployments, ensuring seamless control and orchestration. Meanwhile, hardware such as VXLAN-enabled switches and routers continues to gain relevance, but software maintains its lead due to its adaptability and cost-efficiency. Services, including consulting and managed services, are also witnessing rapid growth as enterprises increasingly rely on expert guidance for VXLAN deployment and optimization.
North America holds the largest share of the VXLAN market, supported by the presence of established cloud service providers, strong adoption of SDN, and the early integration of virtualization technologies across industries. The region's enterprises and hyperscale data centers drive substantial demand for VXLAN to manage complex, distributed network architectures. Asia Pacific is anticipated to be the fastest-growing region over the forecast period, fueled by rapid digitalization, rising cloud adoption, and large-scale data center investments in countries such as China and India. Europe follows with steady adoption, driven by increasing enterprise investments in secure cloud networking and compliance with strict data protection regulations. Latin America and the Middle East & Africa are also witnessing growth, with rising cloud adoption and government-backed digital transformation initiatives stimulating VXLAN demand.

Major market players included in this report are:

Cisco Systems, Inc.
Arista Networks, Inc.
Juniper Networks, Inc.
VMware, Inc.
Huawei Technologies Co., Ltd.
Dell Technologies Inc.
Hewlett Packard Enterprise (HPE)
Nokia Corporation
IBM Corporation
Broadcom Inc.
Extreme Networks, Inc.
Ciena Corporation
F5, Inc.
Check Point Software Technologies Ltd.
Fortinet, Inc.

Global Virtual Extensible LAN (VXLAN) Market Report Scope:

Historical Data - 2023, 2024
Base Year for Estimation - 2024
Forecast period - 2025-2035
Report Coverage - Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
Regional Scope - North America; Europe; Asia Pacific; Latin America; Middle East & Africa
Customization Scope - Free report customization (equivalent to up to 8 analysts' working hours) with purchase. Addition or alteration to country, regional & segment scope*

The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values for the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within the countries involved in the study. The report also provides detailed information about crucial aspects, such as driving factors and challenges, which will define the future growth of the market. Additionally, it incorporates potential opportunities in micro-markets for stakeholders to invest, along with a detailed analysis of the competitive landscape and product offerings of key players. The detailed segments and sub-segments of the market are explained below:

Key Takeaways:

Market Estimates & Forecast for 10 years from 2025 to 2035.
Annualized revenues and regional-level analysis for each market segment.
Detailed analysis of the geographical landscape with country-level analysis of major regions.
Competitive landscape with information on major players in the market.
Analysis of key business strategies and recommendations on future market approach.
Analysis of the competitive structure of the market.
Demand side and supply side analysis of the market.

Chapter 1. Global Virtual Extensible LAN (VXLAN) Market Report Scope & Methodology

1.1. Research Objective
1.2. Research Methodology
- 1.2.1. Forecast Model
- 1.2.2. Desk Research
- 1.2.3. Top Down and Bottom-Up Approach
1.3. Research Attributes
1.4. Scope of the Study
- 1.4.1. Market Definition
- 1.4.2. Market Segmentation
1.5. Research Assumption
- 1.5.1. Inclusion & Exclusion
- 1.5.2. Limitations
- 1.5.3. Years Considered for the Study

Chapter 2. Executive Summary

2.1. CEO/CXO Standpoint
2.2. Strategic Insights
2.3. ESG Analysis
2.4. key Findings

Chapter 3. Global Virtual Extensible LAN (VXLAN) Market Forces Analysis

3.1. Market Forces Shaping The Global Virtual Extensible LAN (VXLAN) Market (2024-2035)
3.2. Drivers
- 3.2.1. Surge in cloud adoption
- 3.2.2. Increasing deployment of data centers
3.3. Restraints
- 3.3.1. Managing interoperability with legacy systems
3.4. Opportunities
- 3.4.1. Rising demand for software-defined networking (SDN) architectures

Chapter 4. Global Virtual Extensible LAN (VXLAN) Industry Analysis

4.1. Porter's 5 Forces Model
- 4.1.1. Bargaining Power of Buyer
- 4.1.2. Bargaining Power of Supplier
- 4.1.3. Threat of New Entrants
- 4.1.4. Threat of Substitutes
- 4.1.5. Competitive Rivalry
4.2. Porter's 5 Force Forecast Model (2024-2035)
4.3. PESTEL Analysis
- 4.3.1. Political
- 4.3.2. Economical
- 4.3.3. Social
- 4.3.4. Technological
- 4.3.5. Environmental
- 4.3.6. Legal
4.4. Top Investment Opportunities
4.5. Top Winning Strategies (2025)
4.6. Market Share Analysis (2024-2025)
4.7. Global Pricing Analysis And Trends 2025
4.8. Analyst Recommendation & Conclusion

Chapter 5. Global Virtual Extensible LAN (VXLAN) Market Size & Forecasts by Component 2025-2035

5.1. Market Overview
5.2. Global Growth Hormone Deficiency Market Performance - Potential Analysis (2025)
5.3. Hardware
- 5.3.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 5.3.2. Market size analysis, by region, 2025-2035
5.4. Software
- 5.4.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 5.4.2. Market size analysis, by region, 2025-2035
5.5. Services
- 5.5.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 5.5.2. Market size analysis, by region, 2025-2035

Chapter 6. Global Virtual Extensible LAN (VXLAN) Market Size & Forecasts by Enterprise Size 2025-2035

6.1. Market Overview
6.2. Global Growth Hormone Deficiency Market Performance - Potential Analysis (2025)
6.3. Large Enterprises
- 6.3.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 6.3.2. Market size analysis, by region, 2025-2035
6.4. SMEs
- 6.4.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 6.4.2. Market size analysis, by region, 2025-2035

Chapter 7. Global Virtual Extensible LAN (VXLAN) Market Size & Forecasts by Application 2025-2035

7.1. Market Overview
7.2. Global Growth Hormone Deficiency Market Performance - Potential Analysis (2025)
7.3. Multi-tenancy
- 7.3.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 7.3.2. Market size analysis, by region, 2025-2035
7.4. Workload mobility
- 7.4.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 7.4.2. Market size analysis, by region, 2025-2035
7.5. Software-Defined Networking (SDN) overlays
- 7.5.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 7.5.2. Market size analysis, by region, 2025-2035
7.6. Network Function Virtualization (NFV)
- 7.6.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 7.6.2. Market size analysis, by region, 2025-2035
7.7. Disaster recovery
- 7.7.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 7.7.2. Market size analysis, by region, 2025-2035
7.8. Others
- 7.8.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 7.8.2. Market size analysis, by region, 2025-2035

Chapter 8. Global Virtual Extensible LAN (VXLAN) Market Size & Forecasts by Application 2025-2035

8.1. Market Overview
8.2. Global Growth Hormone Deficiency Market Performance - Potential Analysis (2025)
8.3. BFSI
- 8.3.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 8.3.2. Market size analysis, by region, 2025-2035
8.4. Healthcare
- 8.4.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 8.4.2. Market size analysis, by region, 2025-2035
8.5. IT & Telecommunications
- 8.5.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 8.5.2. Market size analysis, by region, 2025-2035
8.6. Government
- 8.6.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 8.6.2. Market size analysis, by region, 2025-2035
8.7. Retail
- 8.7.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 8.7.2. Market size analysis, by region, 2025-2035
8.8. Manufacturing
- 8.8.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 8.8.2. Market size analysis, by region, 2025-2035
8.9. Media and Entertainment
- 8.9.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 8.9.2. Market size analysis, by region, 2025-2035
8.10. Others
- 8.10.1. Top Countries Breakdown Estimates & Forecasts, 2024-2035
- 8.10.2. Market size analysis, by region, 2025-2035

Chapter 9. Global Virtual Extensible LAN (VXLAN) Market Size & Forecasts by Region 2025-2035

9.1. Growth Virtual Extensible LAN (VXLAN) Market, Regional Market Snapshot
9.2. Top Leading & Emerging Countries
9.3. North America Virtual Extensible LAN (VXLAN) Market
- 9.3.1. U.S. Virtual Extensible LAN (VXLAN) Market
  - 9.3.1.1. Component breakdown size & forecasts, 2025-2035
  - 9.3.1.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.3.1.3. Application breakdown size & forecasts, 2025-2035
  - 9.3.1.4. End User breakdown size & forecasts, 2025-2035
- 9.3.2. Canada Virtual Extensible LAN (VXLAN) Market
  - 9.3.2.1. Component breakdown size & forecasts, 2025-2035
  - 9.3.2.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.3.2.3. Application breakdown size & forecasts, 2025-2035
  - 9.3.2.4. End User breakdown size & forecasts, 2025-2035
9.4. Europe Virtual Extensible LAN (VXLAN) Market
- 9.4.1. UK Virtual Extensible LAN (VXLAN) Market
  - 9.4.1.1. Component breakdown size & forecasts, 2025-2035
  - 9.4.1.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.4.1.3. Application breakdown size & forecasts, 2025-2035
  - 9.4.1.4. End User breakdown size & forecasts, 2025-2035
- 9.4.2. Germany Virtual Extensible LAN (VXLAN) Market
  - 9.4.2.1. Component breakdown size & forecasts, 2025-2035
  - 9.4.2.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.4.2.3. Application breakdown size & forecasts, 2025-2035
  - 9.4.2.4. End User breakdown size & forecasts, 2025-2035
- 9.4.3. France Virtual Extensible LAN (VXLAN) Market
  - 9.4.3.1. Component breakdown size & forecasts, 2025-2035
  - 9.4.3.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.4.3.3. Application breakdown size & forecasts, 2025-2035
  - 9.4.3.4. End User breakdown size & forecasts, 2025-2035
- 9.4.4. Spain Virtual Extensible LAN (VXLAN) Market
  - 9.4.4.1. Component breakdown size & forecasts, 2025-2035
  - 9.4.4.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.4.4.3. Application breakdown size & forecasts, 2025-2035
  - 9.4.4.4. End User breakdown size & forecasts, 2025-2035
- 9.4.5. Italy Virtual Extensible LAN (VXLAN) Market
  - 9.4.5.1. Component breakdown size & forecasts, 2025-2035
  - 9.4.5.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.4.5.3. Application breakdown size & forecasts, 2025-2035
  - 9.4.5.4. End User breakdown size & forecasts, 2025-2035
- 9.4.6. Rest of Europe Virtual Extensible LAN (VXLAN) Market
  - 9.4.6.1. Component breakdown size & forecasts, 2025-2035
  - 9.4.6.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.4.6.3. Application breakdown size & forecasts, 2025-2035
  - 9.4.6.4. End User breakdown size & forecasts, 2025-2035
9.5. Asia Pacific Virtual Extensible LAN (VXLAN) Market
- 9.5.1. China Virtual Extensible LAN (VXLAN) Market
  - 9.5.1.1. Component breakdown size & forecasts, 2025-2035
  - 9.5.1.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.5.1.3. Application breakdown size & forecasts, 2025-2035
  - 9.5.1.4. End User breakdown size & forecasts, 2025-2035
- 9.5.2. India Virtual Extensible LAN (VXLAN) Market
  - 9.5.2.1. Component breakdown size & forecasts, 2025-2035
  - 9.5.2.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.5.2.3. Application breakdown size & forecasts, 2025-2035
  - 9.5.2.4. End User breakdown size & forecasts, 2025-2035
- 9.5.3. Japan Virtual Extensible LAN (VXLAN) Market
  - 9.5.3.1. Component breakdown size & forecasts, 2025-2035
  - 9.5.3.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.5.3.3. Application breakdown size & forecasts, 2025-2035
  - 9.5.3.4. End User breakdown size & forecasts, 2025-2035
- 9.5.4. Australia Virtual Extensible LAN (VXLAN) Market
  - 9.5.4.1. Component breakdown size & forecasts, 2025-2035
  - 9.5.4.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.5.4.3. Application breakdown size & forecasts, 2025-2035
  - 9.5.4.4. End User breakdown size & forecasts, 2025-2035
- 9.5.5. South Korea Virtual Extensible LAN (VXLAN) Market
  - 9.5.5.1. Component breakdown size & forecasts, 2025-2035
  - 9.5.5.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.5.5.3. Application breakdown size & forecasts, 2025-2035
  - 9.5.5.4. End User breakdown size & forecasts, 2025-2035
- 9.5.6. Rest of APAC Virtual Extensible LAN (VXLAN) Market
  - 9.5.6.1. Component breakdown size & forecasts, 2025-2035
  - 9.5.6.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.5.6.3. Application breakdown size & forecasts, 2025-2035
  - 9.5.6.4. End User breakdown size & forecasts, 2025-2035
9.6. Latin America Virtual Extensible LAN (VXLAN) Market
- 9.6.1. Brazil Virtual Extensible LAN (VXLAN) Market
  - 9.6.1.1. Component breakdown size & forecasts, 2025-2035
  - 9.6.1.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.6.1.3. Application breakdown size & forecasts, 2025-2035
  - 9.6.1.4. End User breakdown size & forecasts, 2025-2035
- 9.6.2. Mexico Virtual Extensible LAN (VXLAN) Market
  - 9.6.2.1. Component breakdown size & forecasts, 2025-2035
  - 9.6.2.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.6.2.3. Application breakdown size & forecasts, 2025-2035
  - 9.6.2.4. End User breakdown size & forecasts, 2025-2035
9.7. Middle East and Africa Virtual Extensible LAN (VXLAN) Market
- 9.7.1. UAE Virtual Extensible LAN (VXLAN) Market
  - 9.7.1.1. Component breakdown size & forecasts, 2025-2035
  - 9.7.1.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.7.1.3. Application breakdown size & forecasts, 2025-2035
  - 9.7.1.4. End User breakdown size & forecasts, 2025-2035
- 9.7.2. Saudi Arabia (KSA) Virtual Extensible LAN (VXLAN) Market
  - 9.7.2.1. Component breakdown size & forecasts, 2025-2035
  - 9.7.2.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.7.2.3. Application breakdown size & forecasts, 2025-2035
  - 9.7.2.4. End User breakdown size & forecasts, 2025-2035
- 9.7.3. South Africa Virtual Extensible LAN (VXLAN) Market
  - 9.7.3.1. Component breakdown size & forecasts, 2025-2035
  - 9.7.3.2. Enterprise Size breakdown size & forecasts, 2025-2035
  - 9.7.3.3. Application breakdown size & forecasts, 2025-2035
  - 9.7.3.4. End User breakdown size & forecasts, 2025-2035

Chapter 10. Competitive Intelligence

10.1. Top Market Strategies
10.2. Cisco Systems, Inc.
- 10.2.1. Company Overview
- 10.2.2. Key Executives
- 10.2.3. Company Snapshot
- 10.2.4. Financial Performance (Subject to Data Availability)
- 10.2.5. Product/Services Port
- 10.2.6. Recent Development
- 10.2.7. Market Strategies
- 10.2.8. SWOT Analysis
10.3. Arista Networks, Inc.
10.4. Juniper Networks, Inc.
10.5. VMware, Inc.
10.6. Huawei Technologies Co., Ltd.
10.7. Dell Technologies Inc.
10.8. Hewlett Packard Enterprise (HPE)
10.9. Nokia Corporation
10.10. IBM Corporation
10.11. Broadcom Inc.
10.12. Extreme Networks, Inc.
10.13. Ciena Corporation
10.14. F5, Inc.
10.15. Check Point Software Technologies Ltd.
10.16. Fortinet, Inc.

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